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ECB & Eurosystem ECB & Eurosystem 1/31/3In the process of convergence with the EU standards and preparations for joining the European System of Central Banks, the CBBH has a proactive role in continuous institutional and human resources capacity building. Progressive implementation of the EU standards in the CBBH operations is also realized through the access to EU funds and direct cooperation with the ECB and Eurosystem national central banks, which started in 2007. Under CARDS 2006 technical assistance programme, the CBBH has established a direct cooperation with the European Central Bank and its partner central banks, members of the ESCB/ Eurosystem. The implementation of the CBBH Needs Analysis Programme by the Eurosystem started in February 2007. The programme was aimed at estimating the current situation in the CBBH, with purpose of identifying the needs of harmonization with the EU standards. The Programme was implemented through the Eurosystem coordinated approach, including the ECB in partnership with the Eurosystem national central banks.

CBBH CBBH CCooperation ooperation PProgrammes with therogrammes with the

ECB & Eurosystem ECB & Eurosystem 2/3 2/3 The second phase of technical cooperation with the ECB was related to the implementation of recommendations arising from the "Eurosystem needs assessment programme to the benefit of the Central Bank of Bosnia and Herzegovina„ aimed at gradual harmonization of the CBBH operating standards with those of the ESCB/Eurosystem. The implementation of the Programme of Technical Cooperation of ECB/Eurosystem with the CBBH from Instruments for Pre-accession Assistance started in April 2010. The programme lasted for eighteen months, with the purpose of supporting the CBBH in its efforts to implement the central banking standards of the

European Union within BH preparations for the EU accession.

Within the mentioned cooperation with European partners, the CBBH confirmed its good reputation and exceptional professionalism of the staff as a base for further efforts of the CBBH to ensure timely preparations for the EU,

and consequently, monetary and macroeconomic stability of the state.

CBBH CBBH CCooperation ooperation PProgrammes with therogrammes with the

ECB & Eurosystem ECB & Eurosystem 2/3 2/3 Improvements, achieved in areas of monetary and balance of payments statistics, such as interest rate statistics and portfolio investment statistics, are significant. With purpose of providing good quality and reliable statistics, according to the ESCB/eurostat standards, many activities need to be undertaken in many areas of statistics in the future, not only by the CBBH, but also by other relevant institutions in BH which are trying to strengthen their institutional capacities for the production of statistics, and also cooperation among institutions in this area. Achievements in the area of EU integrations and legal obligations arising from the acquis are also very important. In the process of the CBBH preparations in harmonization with EU standards and fullfillment of future accession obligations, as a very important step, informal opinion of the ECB experts on the Law on the CBBH has been already provided. Although the very accession to the EU will take a certain time period, the experiences of other countries confirm that timely harmonization of the CBBH Law needs to be ensured.

Under IPA2007 Twinning light project "Capacity Building of Human Resources Department of the Central Bank of Bosnia and Herzegovina“, the CBBH was the user of Instruments of Pre-accession Assistance. The implementation period was from September 2009 till February 2010.